Part 1: Concept
Write a short explanation for each of the following words/abbreviations. Each explanation is worth a maximum of 1 point.
1) Persistent dumping is a process of price increase for services or goods on home market by the international company, which has a monopolistic position on the domestic market, while keeping it on the normal level on external markets in order to stay there competitive.
2) Price escalation is setting the difference prices for some goods or services on domestic and foreign market, because of the difference in costs of manufacturing, transportation and custom tariffs.
3) Born Global is a firm’s strategy to orient its business performance to global market from the very beginning. Such companies are not paying much attention to the domestic market, but trying to obtain some competitive advantages from sales of its goods and usage of input materials in many countries.
4) Country of origin is a country where the good was, manufactured or grown or constructed. This term is frequently used during tax clearance of imported goods, because customs tariffs differ because of country of origin.
5) Sanction is kind of penalty imposed by one country or group of countries onto other countries because of some economic, political or social issues or even conflicts. For instance economic sanctions can be set up in the form of different forms of trade barriers (import tariffs, quotas, and even embargo).
6) Direct exporting is a process of selling commodities by producer or supplier to the foreign market eliminating intermediaries directly to end customer who is interested in buying your products.
7) Grey Market is trade market which can be characterized by existence distribution channels, which are legal, but unauthorized, unofficial or unintended by the manufacturer. Grey Market goods are not supposed to be sold on normal market and cannot be supported by the official importers of these goods.
8) Countervailing duties...